st: Maarten: quick follow-up

["Nihal Pitigala" <pi.gala@hotmail.com>]

Thanks Maarten, Sorry to pester you on this. I have a brief follow-up 
question you'll see at the end of the paragraph. I certainly would refere to 
XT manual on xtmixed. Looks like you offered some tips on this topic to a 
few. My initial idea is to run a cross section regression i.e. bilateral 
equation as shown below for the year 2001...where Ai is a set of exporter 
fixed effects, to control for  cross-section stability (this is to control 
for individual contry specific heterogeneity?) . uijk is normally 
distributed error term, estimated through OLS.

Can you give me a laymans explanation to estimations such as differencing 
1997 and 2001. Thanks very much again. this will help my understanding of 
Stata and method os estimation.

LnVSikj =  Ai+   ��1LnTarOik  +   ��2LnTarPikj +  ��3LnICTikj +    
��4LnInfrOijk+  ��5LnInfPijk
+ ��6LnResik +  ��7LnCapik +  ��8LnPolik  +��9LnFinik +��10LnGDPik + 
��11LnRemotijk  (4)  +     Uijk


> Nihal Pitigala:
> If the data is set up as in the example you show, than you are ready to go:
> just type -reg LnTrade LnTariff LnTransports- (without the hyphens). You
> might want to consider moving into crossed random effects here using
> -xtmixed-, since each pair of countries is nested within its constituent
> countries plus each pair consists of multiple entries, which are again 
> nested
> within sector. The entry for -xtmixed- in the XT manual is good in 
> explaining
> how to set that model up.
> HTH,
> Maarten
>
> -----------------------------------------
> Maarten L. Buis
> Department of Social Research Methodology
> Vrije Universiteit Amsterdam
> Boelelaan 1081
> 1081 HV Amsterdam
> The Netherlands
>
> visiting adress:
> Buitenveldertselaan 3 (Metropolitan), room Z434
>
> +31 20 5986715
>
> http://home.fsw.vu.nl/m.buis/
> -----------------------------------------
>
> --- Nihal Pitigala wrote:
> Data is in the following format:
>
> Country Partner GTAP SectorLn Trade       LnTariff             Ln 
> Transports
> Albania Australia       21 agro -3.178341688    2.546306314     1.941615225
> Albania Australia       22 milk -4.937585181    3.714802733     2.385086315
> <snip>
>
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